Organizational Cultural Audit and Gap Analysis - Essay Example

 Introduction McDonalds is one of the world’s largest fast food retail chains operating all around the world. Its operations are as wide as it is working with more than 30,000 outlets in 120 countries. Out of these stores, 1,200 are located in UK. The selling and marketing strategy of McDonalds is resembled to value strategy, according to which they sell their products on lower prices as compared to the market competition. They have effective marketing and advertising strategies which helps to create value, strong brand positioning and building positive product related perception in customers’ mind. McDonald is among those giant companies which claim to be responsible for high ethical values but yet certain gaps may be identified. However they believe in bilateral communications with stakeholders and remain pretty successful to cover these gaps. Nevertheless certain gaps are frequently observed related to workplace conditions and animal wild welfare indeed. They, time to time, put enormous endeavors to create an environmental friendly image in front of the entire stake holders. The target approach reveals that they have to follow system growth avenues but it seems to be failed by the poor annual performance. One of the most important priorities of the company is to disguise the underlying gaps. Background of the Company McDonald’s is world’s most popular fast food retail chain. Its first outlet was inaugurated in 1955 in United States. When it was started for the very first time, nobody could even imagine that this business would grow so fast that the number of chains will cross the figure of 30,000 within 50 years. The basic strategy of outlets is franchising but it is a little bit different in UK. Around 30% of the outlets in UK are company owned while remaining is franchised traditionally. The new franchises being opened in UK are franchised rather than being in company ownership. McDonalds is growing geographically by leaps and bounds. The food courts concepts has remained enough abundant for the company by opening the new sites in smaller towns, road sides, amusement parks, river banks and sea side’s (Annual Report). Marketing Strategy of McDonald Vision of the company is related to providing the most efficient services amongst all of the fast food retailers in the world. The QSC&V approach can be observed in the organizational culture. This stands for Quality, Services, Cleanliness and Value. All these are expected to deliver in an exceptional way. They relate this with customer happiness by making them smile through unmatched services and value addition. The value creation and adding more value in to the products and service packages is the key component of McDonald’s marketing strategies. The products, which are excessively valued and customer oriented, are the most popular in the name of McDonald’s throughout the burger market of the globe. Value strategy for pricing is addressed by presenting the products and services at relatively lower prices (Schein, 1985). Children are addressed by McDonald’s kids’ meals offerings such as happy meals or toy meals etc. There is a strong differentiation over the core offerings of the company. This aids Porter’s five forces model as this differentiation put barriers for new entrants in the market. These offerings may include Big Mac and Fries (Henriques and Valls, 2001). Environmental and Ethical Position The management reveals about ethical values of the company as they are more interested in truthfulness, integrity and honesty while carrying out the business operations. They have profound and diligent interest in presenting a picture of ethically concentrated company in front of the stakeholders of the company. They have set a boarder of expectations which is beyond the reality within their mission and vision statement. However the feasibility of mission statement is quite viable as compared to the stated vision. They have stated a number of ethical stances as the ethical code of conduct for organizational culture. These standards are a part of artifacts. These may include the following: The right things are to be done It is an obligation to take care for the community by not hindering in the operations and routines of neighbors by acting awkward in the society Going green: taking strategic view of green environment in mind while also caring for wild life and animal welfare Not being indulged in environment hurting activities such as emitting CO2 and the ISO standards are to be followed strictly Natural resources are to be protected Waste management must be effective such that it must not be harmful for environmental participants The accountability and reward punishment system must be lucid and transparent According to the CEO statement, they are more concerned to turn the environment positively by taking productive initiatives for welfare of environment and society. Positive deeds are encouraged even within the organizational culture (Annual Report). Gap Analysis and Cultural Audit Marketing & HR (Cultural) Strategy: Traditionally, McDonald’s claims to be based upon three primary measurements of accuracy. These may include People in the organization (claiming of being one of the best employers in the world), Exceptional services which are presented to the Customers by adding Value and last but not the least is System Growth Approach (for backend stakeholders of the company such as suppliers, board of directors and managers). These are the stated official concerns of the company. McDonald’s has not yet introduced any zero fat meal which is enough healthier for reducing the going concern of obesity, cholesterol and heart diseases. Most of the employees in the franchises are not enough satisfied with pay and remuneration system which is set by the franchise owner. The company must take any action which is enough strong in other to get rid of this issue (Fox and Vivas, 2001). The statistics are quite vague which may explicate the value principal of the company presented to the customers. Hence it is also unrevealed in the quantitative terms but only it is found in statements and reports. Thus the followed points are quite contradicting and creating gaps between claimed and offered. Ethical Standards: The most recent ethical scandal, related to McDonald’s, was observed when they offered beef burger in India while it was quite unethical. It is because the Indians are very sensitive about cows as their religious symbol. It embossed a negative image with the name of McDonald’s. The fast food has been nominated as the main cause in creation of excessive obesity in youth and children of current age. Yet there is no action taken to set off the concern of obesity. The ethical implicitly of McDonald’s is quite questionable in this way. Environmental Issues: The animal welfare and wild life protection issues are continuously being ignored by the management .The people, who are pure vegetarian, are strongly opposing the offerings of meet related meals. Other than that, the company is standardized as an up to the mark organization which is following the entire regulations of environmental standards. For aiding and boosting the recycling process, McDonald’s has equipped with a recycling plant namely McRecycle in order to grave out the concern of recycling and waste management. The paper and wood related material is properly recycled. There has been a intensive external waste management cycle which controls the harmful emissions to the earth and to the outside environment. This is how it is meeting with the preset environmental standards to presume the standards of environment protection. References A handbook for conducting gap analysis. (2000). Moscow, Idaho: University of Idaho. "Annual Reports :: Annual Reports :: AboutMcDonalds.com. (n.d.). McDonald’s – Official Global Corporate Website :: AboutMcDonalds.com. Retrieved April 12, 2013, from www.aboutmcdonalds.com/mcd/investors/annual_reports.html Fox, M., & Vivas, J. (2001). Wilfrid Gordon McDonald Partridge. Brooklyn, N.Y.: Kane/Miller Book Publishers. Henriques, G., & Vall, A. (2001).McDonald's collectibles: identification and values (2nd ed.). Paducah, KY: Collector Books. Schein, E. H. (1985). Organizational culture and leadership. San Francisco: Jossey-Bass Publishers.   Read More